*Disclaimer: Your stock investments should be based off your own personal analysis and/or from a professional.

The possibility of oil and gas shortages can be linked to various factors such as the number of gas tank truck drivers decreasing, the recent cyberattack on the Colonial Pipeline, and more. In 2019 and 2020, there was a much smaller demand for gas, but with people expecting to travel at high levels this summer, the demand could skyrocket to unstable levels.

Approximately 25% of tank trucks remain idle heading into this summer because of the lack of qualified drivers, making it more difficult to supply gas to gas stations across the country. On top of that, the panic after the pipeline cyberattack caused 65% of North Carolina gas stations to run out of gas last week, while more than 43% of stations in Georgia, South Carolina, and Virginia were out as well. These shortages show that gas may not be a reliable fuel source, and electric vehicles can benefit off of this.

President Joe Biden announced at last month’s virtual climate summit that he hopes to have net-zero emissions by 2050, and his infrastructure plan is geared to help the climate of the US. The plan would require every state by 2035 to generate all of its electricity from fuels that don’t produce harmful emissions. Biden also wants electric vehicles to the primary type of vehicle driven in the future, and his plan aims to have 500,000 ev charging stations by 2030.

From a global standpoint, the International Energy Agency wants to take more serious measures and says that the world must stop drilling for oil and gas immediately to prevent climate catastrophe. Presidents from multiple countries such as China and South Korea have vowed to reduce their use of fossil fuels over time, and China specifically has better electric vehicle production over the US. Slowly but shortly, various world leaders are making an attempt to reduce the world’s carbon footprint.

What This Means for Electric Vehicle Stocks

While it will take some time, fossil fuels will eventually not be the primary source of fuel across the world. Electric vehicle production and innovation is only going to increase, and countries such as the US and China will entice citizens into having an electric vehicle over time. So electric vehicle stocks are only going to gradually increase in price as well.

But which electric vehicle stocks are good to invest in? Tesla (TSLA) and Nio (NIO) are two of the most popular EV manufacturers in the world, and their stocks are going to see more success long-term as electric vehicles become more popular. Then there’s Volkswagen (VWAGY) who has been heavily involved in the EV market and could end up being Tesla’s top competitor for electric vehicles in the US. But if you’re a beginner and not sure which stock to invest in, ETFs may be the best option for you.

What Is an ETF?

An exchange-traded fund (ETF), is an investment fund that allows you to buy a collection of stocks or bonds on the stock market. So instead of investing in separate stocks, an ETF can offer a group of similar stocks, and can be beneficial in diversifying your investment portfolio. There are multiple EV ETFs that you can buy, which lets you invest in a variety of companies that relate back to electric vehicles.

The iShares Self-Driving EV and Tech ETF (IDRV) focuses more on companies that make crucial software for these vehicles, which includes companies such as Apple, Qualcomm, NIO, and Tesla. The KraneShares Electric Vehicles and Future Mobility Index ETF (KARS) is another popular one that focuses more on Chinese companies but also has more recognizable companies like BMW. An ETF that focuses on companies that help produce batteries for electric vehicles is the Global X Lithium & Battery Tech ETF (LIT), with includes companies such as Panasonic, LG, and Samsung.

ETFs like these can be helpful when looking for what companies to invest in when it relates to electric vehicles. There are plenty of other EV ETFs that you can search for, depending on what aspect of electric vehicles you want to focus on. Maybe you’re more interested on the software side and want to look into companies that produce EV software. Or you could be more fond of which companies help manufacture EV batteries. Regardless of which ETF or individual stock you choose, investing in the electric vehicle market looks promising.